...Sridhar Bhat, Shrivarsha @03282070 Culture and Business in Saudi Arabia 1. What forces that shape modern Saudi culture? How similar to different forces from those that shaped the culture of Western Nations? Historically Saudi Arabia is a conservative country where people desire to preserve religious values and ancient tradition of the region. Saudi culture can be traced back during 1744, the nomadic tribes who roamed around Arabian Peninsula. Even today the Saudi culture is based on Bedouins and also Islam influenced greatly to shape modern Saudi culture. The stores and restaurants still offer prayers daily as stated in the Koran and strict rules are followed especially women with fully covered dress code with little freedom unlike western culture where there is no discrimination between a man and women resulting in many women entrepreneurs and businesswomen. Even though majority of the western nations have similar religious and culture with Christianity spread across major countries, they do not allow this to have a negative impact on the business. Whereas in Saudi, the values based on religious teachings is still continued and are very strong. The Saudi carry out business with people after establishing trust through face to face meetings in relaxed fashion involving friends and family in the business and decision making. This is not seen in western culture as they are more success oriented valuing time and money. 2. What kind of misunderstanding or likely to arise between...
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...Saudi Arabian Business Culture Abstract People have different cultural characteristics that affect the way they conduct business. This paper will educate the reader on how religion, relationships, communication, different concepts of time, culture and family values, building respectful and trusting relationships, business meeting etiquette, dress and appearance, and gender considerations all influence the way the Saudi Arabians negotiate business. I chose to write about this topic based on a personal experience I had with a male Saudi Arabian Officer that was my classmate during BOLC (Basic Officer Leadership Course). Due to my lack of cultural knowledge, I found myself struggling to communicate with him until I took the time out to learn about their cultural differences. Country Information Saudi Arabia, formally known as the Kingdom of Saudi Arabia, is a desert country, encompassing most of the Arabian Peninsula. The country is positioned between the Red Sea in the west and the Arabian Gulf in the east. It is bounded on the north by Jordan, Iraq and Kuwait, and on the south by the Yemeni Republics (north and south), and on the east by the United Arab Emirates, Bahrain, Qatar and Oman (“The Kingdom of Saudi Arabia in Brief,” n.d., para 1). The Kingdom of Saudi Arabia is approximately 1,960,582 sq. km and occupies an area about the size of the United States east of the Mississippi River. Riyadh is the capital city of Saudi Arabia. The name originated from the Arabic...
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...Difference Culture In International Business Report between Saudi Arabia & U.S.A Culture in International Business Culture Culture refers to the cumulative deposit of knowledge, experiences, beliefs, values, attitudes, meanings, hierarchies, religions, nation of time, roles, spatial relations, concepts of the universe, material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Culture is a fuzzy set of basic assumption and value, orientations to life, beliefs, policies, procedures and behavior and his/her interpretations of the ‘meaning’ of other people’s behavior. (Spencer- Oatey 2008:3) ‘Culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may. On the other hand, be considered as products of action, on the other. As conditional elements of future action.’ (Kroeber and Kluckhohn 1952: 181; cited by Adler 1997: 14) Culture differences in International Business Doing business with others countries, the difference culture is a point that a business man should aware of. A key to being successful in business internationally is to understand the role of culture in international...
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...Differences in Saudi Arabia and the USA Saudi Arabia is the biggest country in the whole Arab world. The population of Saudi Arabia is 27 Million. Saudi Arabia is a country where from Islam is originated. The Prophet of the Muslims Muhammad SAW was born in Saudi Arabia, and also He started His teaching here. It can be said that the Saudi Arabia was the first home of the Muslim’s nations. The geography of Saudi Arabia is very diverse; it has mountains, desserts grassland, and forests. The temperature goes very down in winter and in summer; it goes very high in desserts. Rain is slightly lessor in Saudi Arabia. The surface of Saudi Arabia is also called as the surface of the oil. While United States is a liberal democracy having 50 states and USA was also the key partner in the initiation of the World Bank in 1944. Now at the present USA is a major shareholder of the World Bank. The USA has a total population of 323,214,999. It makes the USA the third biggest country in the world according to population (Li, 2012). Each nation has what recognizes it from different nations. The United States and Saudi Arabia are huge countries. They have a universal impact on political issues and the economy. The United States has novel things; likewise, Saudi Arabia has as well. There is a considerable measure of contrasts between the United States and Saudi Arabia; however there is a couple of similitude between them. One evident difference is the religion. The main religion is Islam in Saudi Arabia;...
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...Medical Equipment Inc. In Saudi Arabia Medical Equipment Inc. hired Ankur Grover as a US sales account manager. When he returned to his office after the meeting, he was disappointed from the rejection of his proposal. Although, he worked very hard to secure the sale, but Saxman told Grover that Sulaiman Al. Humaidi, the purchasing director has given the order to Hamad Najjar from Wilson’s Company; the main competitor of Medical Equipment Inc. Grover was sure that the product of his company was superior from Wilson’s and he wondered that how he could secure the sale. The case study aims to answer the questions that did Grover understand the culture of Saudi Arabia and what were the possible options through which he could retain the sale. Question 1 Saudi Arabia was founded in1932 and the local business culture of Saudi Arabia was different from other foreign cultures. Grover did not understand the local culture. He thought that he understood the culture and had a good understanding of culture as he was raised in Saudi Arabia, but in reality he grew in an expatriate environment and had a limited contact with the people of Saudi Arabia. The reason that he did not understand the culture was he studied in an Indian school and then completed his degree from USA. He did his internship in France and USA. Although, he got the work experience, but the business concepts of Saudi Arabia was different from the foreign business (Anna, Schuster, Norberg & Helander, 2013). When he...
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...Brunel Business School – Doctoral Symposium 4th & 5th March 2010 Student First Name: Rajeh Student Second Name: Albugamy Copyright subsists in all papers and content posted on this site. Further copying or distribution by any means without prior permission is prohibited, except for the purposes of non-commercial private study or research, as defined in the Copyright, Designs and Patents Act 1988, or as otherwise authorised by statute. To obtain permission, please contact the author of the relevant paper in the first instance or email copyright@brunel.ac.uk with details of your request. The Impact of Saudi Culture on Recruitment and Selection Practices in the Privet Sector in Saudi Arabia By Rajeh T. Albugamy Submitted to BBS Doctoral Symposium Brunel University 4th & 5th March, 2010 -2- Abstract The ultimate goal of recruitment and selection is to hire or get the right people for the right positions, i.e. qualifications; skills and merit are the criteria that should determine who would occupy the job rather than nepotism, favouritism or any other cultural elements (Alghailani, 2005). In Saudi Arabia like the other Arab countries , wasta for example, an Arabic term which means using connections for personal gains, is deeply rooted in the culture and having a big influence on people’s life and business among that obtaining a job depending on the strength of wasta (Hutchings and Weir, 2006). Employees in Saudi Arabia with strong family and tribal connections...
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...1. What forces shaped modern Saudi culture? How similar or different are these forces form those that shaped the culture of Western nations? Saudi Arabia is a historically conservative country where a large segment of the population desires to preserve the religious values and ancient the business sector. The culture of the country has been shaped by combination of Islam and Bedouin traditions. The strict Wahhab sect of Islam still has a profound influence on Saudi culture, something that is very visible to foreign travelers. They follow Islamic rules that shapes difference from culture of western nations. For example-stores and restaurant close at the five of the daily prayer times, and many restaurants, including western ones such as McDonalds have separate dining areas for men and women. Women in Saudi Arabia are not allowed to drive a car, sail a boat, or fly a plan or to appear outdoors with hair, wrists or ankles exposed-something that western companies need to keep in mind when doing business in the country or with Saudis elsewhere. Indeed, women traveling on their won have generally needed government minders or permission slips. From the above statement we can say that, Saudi Arabia run their business on their religious culture norms and values, that has created a lot of differences between them and western nations. 2. What kinds of misunderstanding likely to arise between an American company and Saudi enterprise, if neither of which has experience dealing with...
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...International Business Saudi Arabia’s Dynamic Culture Introduction The American way of business differs from many other countries across the world. Each company has their own set of tactics that they use to close big deals. Businesses from Saudi Arabia, on the other hand, tend to do things a bit differently. They take pride in getting to know the individuals from the other company before even disclosing any information to them. Meetings sometimes take place in less than formal locations such as coffee shops and cafes. The religious and social differences between the United States and Saudi Arabia make it challenging for Americans, unaware of the way of Saudi life, to do business there. They may experience cultural shock or even offend the people they are looking to do business with. Americans tend to be more deal focused, focused on the take at hand and looking to do whatever is necessary to complete the transaction. Saudis are more relationship focused, in which they would rather take their time and develop a relationship with the other businesspeople prior to making any business decisions. The clash of both business styles could be either very good or very bad, depending on how willing each side is to accommodate the other. 1. Assume you are a manager in a multinational company that needs to send a team of three to five people to Saudi Arabia for about two weeks to investigate the feasibility of selling you products there. What advice would you give them to help...
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... Class: Elective International Business (2830006) Faculty: Pratiksinh Vaghela A Report on Module V Case Study Presentation “Culture and Business in Saudi Arabia” Submitted by: Group No: () Sr. No. Enrollment number Name 1 148050592058 R. Suraj 2 148050592066 Azhar Shah 3 148050592077 Sunil Tiwari 4 148050592082 Kalpesh Vasova 5 148050592085 Jay Viththlani Subject: International Business (2830006) Submitted to: Mr. Pratiksinh Vaghela S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805 Summary Western enterprise wants to do their business in the Saudi Arabia but it was not easy to start the business in the Saudi Arabia. Western aerospace company (boeing and Lockheed) sold their aircraft in the Saudi Arabia in past year. Also from a decade now Saudi Arabia has open the foreign investment in certain sector but they had kept oil and gas sector for the foreign investment. Saudi Arabia is a conservative country where large segment of the population believe in the religious values and ancient tradition of region, due to this they spill over into the business sector. As a culture shape by Islam and Bedouin tradition. In 1744 after nomad and ibn abd-al-wahhab has implement which was expressed in the Quran and that law is applicable till today. If the foreign company want to do any business in the Saudi Arabia they had to face the certain problem regarding to their business in the country like Saudi Arabia for example, stores and restaurants close...
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...Doing Business in Saudi Arabia 1) Prepare a short description of the most striking cultural characteristics that may affect business interaction in this country. Doing business in Saudi Arabia requires significant research if I expect to be successful. There are many cultural differences that must be taken in consideration prior to and during business interactions. The Saudi Arabian culture, its shared values and norms, is distinctly different from our western culture. Saudi Arabian social structure emphasizes a group rather than individualism. Saudi’s are more likely to identify themselves as a part of something (e.g., “I am from Exxon Mobil”) rather than identifying their individual role (e.g., “I am an engineer”). It will also be important to understand the social stratification within Saudi Arabia. Having a working knowledge of the significance of the tribal affiliations as well as the varied groups of which someone can be a part will help me to understand which individuals I need to approach and build relationships with in order to be successful in the region. It will also be incredibly important for me to understand the role of religion, specifically Islam, in the region and how it affects work ethic, business decisions, and simple logistics throughout the day. As Americans, we are focused on our work and we allow very little to get in the way of our accomplishments. Saudi’s are very different. Work is secondary to many things, most notably, religion...
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...throughout the remainder of the report. Additionally, regulations found in one Islamic nation can vary greatly in comparison to the advertising styles in another. Each country is different and although many nations are Muslim-majority, such as Saudi Arabia, Iran, and Indonesia, they all have varying practices and rules and cannot be treated as one in regards to advertising. A firm must tailor their marketing style to each individual nation while respecting and acknowledging their religious practices. As far as recommendations for marketers, they will need to be tailored to each country individually, but in general it is important to embrace the Islamic religion and integrate the brand into Muslims’ everyday life while taking care to respect their beliefs and practices. Islamic nations are said to be “the next frontier” of advertising, so it is essential that large firms and their agencies take note of these norms and regulations and use research and knowledge to their advantage when marketing to Muslim-majority nations. Introduction As a foreign brand, advertising in Islamic nations has been a constant struggle. No brand or company, regardless of size or popularity is immune to potential pitfalls of advertising in a culture vastly different than your home market. For example, in 1996 Nike released a pair of shoes with a logo on the sole that...
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...Culture and Business in Saudi Arabia 1. What forces that shape modern Saudi culture? How similar to different police forces from those that shaped the culture of Western Nations? Because modern Saudi culture is rooted in the nomadic tribes that once roamed the Arabian Peninsula, some modern day Saudi Arabia culture can be traced to the Bedouins. Islam has also influenced modern Saudi culture. Stores and restaurants still do the daily prayer dictated by the Koran and the strict dress codes followed by women make it unlike any other Western culture because the values and the social norms are based on religious teachings that still continue. 2. What kind of misunderstanding or likely to arise between an American company and the Saudi enterprise, if neither of which has experience in dealing with the other? Different cultures have different ways of doing business. In Saudi Arabia, family and friendship plays a big role in career advancement whereas in the US individual success is more important. Woman make up a share of the workforce but in Saudi Arabia women have little freedom. It is important that both sides are sensitive to each other’s culture for effective business conduction. 3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be? The most important piece of advice would be to take time and learn about the Saudi culture and the Saudi way of doing...
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...Business Communication 04/19/2015 How to prepare business in Saudi Arabia and China There are a lot of elements that make life different between countries around the world, which makes it harder for people to communicate and understand each other. Elements like geography, population, features, economic systems, verbal and nonverbal languages, religions, genders and customs are common important elements that make conflicts between people around the world. Understanding and respecting these elements will make a safe life. However, the most important reason that attracts people to know more about each other is business. Countries like Saudi Arabia and China are two of the most important business countries around the world. So, learning about how to prepare international businesses in China and Saudi Arabia are necessary. Geography Saudi Arabia is located in the Middle East, which has very important navigational routes that connect between the east and west. That location gives Saudi Arabia an advantage when it comes to international trading. Saudi Arabia shares borders with Iraq 814 km, Jordan 744 km, Kuwait 222 km, Oman 676 km, Qatar 60 km, UAE 457 km and Yemen 1,458 km. Those countries are unstable and that makes it hard to do business and investments in such a region. Although, Saudi Arabia is on the borders of those countries, the investment still is going well. On the other hand, China stretches about 5026 kilometers across the East Asian landmarks. It is bordered...
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...problems as perceived by Saudi Arabian and American managers, International Journal of Intercultural Relations, 5, Pergamon Press Ltd., 349-363. Retrieved 31 October 2012 from http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science/article/pii/014717678190047X Ahmad, S. Z. (2011). Businesswomen in the Kingdom of Saudi Arabia. Equality, Diversity and Inclusion: An International Journal, 30(7), 610-614. Retrieved 1 November 2012 from www.emeraldinsight.com/2040-71-49.htm Ahmad, S. Z. (2011). Evidence of the characteristics of women entrepreneurs in the Kingdom of Saudi Arabia: An empirical investigation. International Journal of Gender and Entrepreneurship, 3(2), 123-143. Retrieved 2 November 2012 from www.emeraldinsight.com/1756-6266.htm. Al-Kandari, A., Gaither, T. K. (2011). Arabs, the west and public relations: A critical/cultural study of Arab cultural values. Public Relations Review, 37, 266-273. Retrieved 2 November 2012 from http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science/article/pii/S0363811111000646 Al-Khatib, J. A., Malshe, A., Mazen, A., (2008), Perception of unethical negotiation tactics: A comparative study of U.S. and Saudi managers, International Business Review, 17(1), 78-102. Retrieved 31 October 2012 from http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science/article/pii/S0969593107001448 Al-Qahtany, M. D. (2002). Doing business in Saudi Arabia: Implication for international...
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...throughout the remainder of the report. Additionally, regulations found in one Islamic nation can vary greatly in comparison to the advertising styles in another. Each country is different and although many nations are Muslim-majority, such as Saudi Arabia, Iran, and Indonesia, they all have varying practices and rules and cannot be treated as one in regards to advertising. A firm must tailor their marketing style to each individual nation while respecting and acknowledging their religious practices. As far as recommendations for marketers, they will need to be tailored to each country individually, but in general it is important to embrace the Islamic religion and integrate the brand into Muslims’ everyday life while taking care to respect their beliefs and practices. Islamic nations are said to be “the next frontier” of advertising, so it is essential that large firms and their agencies take note of these norms and regulations and use research and knowledge to their advantage when marketing to Muslim-majority nations. Introduction As a foreign brand, advertising in Islamic nations has been a constant struggle. No brand or company, regardless of size or popularity is immune to potential pitfalls of advertising in a culture vastly different than your home market. For example, in 1996 Nike released a pair of shoes with a logo on the sole that...
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